Standard price and variable costs Sales price. Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs $ 37.00 8.90 4.20 6.20 6.90 Manufacturing overhead Selling, general, and administrative non planned to make and sell 36.000 copies of the book. $133,000 51,000
Standard price and variable costs Sales price. Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs $ 37.00 8.90 4.20 6.20 6.90 Manufacturing overhead Selling, general, and administrative non planned to make and sell 36.000 copies of the book. $133,000 51,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces.
Standard price and variable costs
Sales price.
Materials cost
Labor cost
Overhead cost
Selling, general, and administrative costs
Planned fixed costs
Manufacturing overhead
Selling, general, and administrative
$ 37.00
8.90
4.20
6.20
6.90
$133,000
51,000
Vernon planned to make and sell 36,000 copies of the book
Required:
a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements,
assuming production volumes of 35,000 and 37,000 units. Determine the sales and variable cost volume variances, assuming volume
is actually 37,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e..
zero variance).)
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